Problems with Washington Excise Tax and Coast Guard Documented Vessels
An increasing number of clients have had difficulty with the Washington State Department of Revenue's interpretation of RCW 88.02, regarding the registration of pleasure vessels in the State of Washington. Washington imposes an excise tax on vessels over 16 feet in length for the privilege of using Washington waters for their vessels or yachts. Boat owners obtain a Washington decal which they obtain paying the excise tax, measured at .5% of the vessel's value. However, owners with vessels documented with the U.S. Coast Guard have often been told by Washington State Department of Licensing that only a decal is needed, not the registration, which would imply that the excise tax is not required.
This apparent interpretation problem could result in a variety of results which is always a problem when dealing with taxing authorities.
